Business news from Ukraine

Business news from Ukraine

WATER PRODUCER VODA UA PLANS EXPORT EXPANSION TO OTHER COUNTRIES

Water producer Voda UA (Kyiv) plans to increase export supplies of Carpathian high-mountain waters under the trademarks Voda UA, Goryanka, Karpatska Vysokohirna due to a significant reduction in the domestic market caused by the military invasion of Ukraine by the aggressor country of the Russian Federation.

The owner and founder of the group of companies Dmytro Nikiforov told Interfax-Ukraine on Monday about the launch of the Support Ukraine, Buy Ukrainian project to promote Ukrainian brands abroad.

According to the data on the project website https://supportukrainianbusiness.com/, it was created to encourage Europeans to buy Ukrainian products to support Ukrainian business, which in turn helps the Ukrainian military, volunteers and civil organizations.

So, since the military invasion of Ukraine by the Russian Federation, Voda UA has already provided UAH 3.5 million worth of its products for the Armed Forces of Ukraine (APU), volunteer organizations, bomb shelters and other people in need.

“There can be no question of any business in Russia or with Russian business in any form,” Nikiforov said, pointing to the consequences of Russian aggression in Ukraine.

According to Nikiforov, now the Voda UA plant in Ivano-Frankivsk region is operating normally, while after the start of the war it experienced problems with logistics.

“Logistics was disrupted for just two weeks. Nobody wanted to go to Kyiv, and the invaders were right near Kyiv, and half the country was cut off for delivery. Now everything is working as usual. There are problems with consumables from suppliers. For example, the Hostomel glass factory, where our legendary bottle is produced suffered quite a lot,” Nikiforov said.

At the same time, the Voda UA office in Kyiv is closed, and its employees work remotely. The company continues to pay office employees 75% of the pre-war wage rate, including those who serve in the Armed Forces of Ukraine.

Voda UA is a group of companies engaged in the extraction of Carpathian high mountain waters under the trademarks Voda UA, Goryanka, Karpatska Vysokohirna. The owner of the group of companies is Dmytro Nikiforov.

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LITHUANIA IS READY TO HELP UKRAINE TO EXPORT UNSOLD VOLUMES OF GRAIN THROUGH KLAIPEDA

Lithuania is ready to help Ukraine export unsold volumes of grain from last year’s harvest, Lithuanian Minister of Communications and Transport Marius Skuodis told reporters.
According to him, grain can be transported through Poland to the port of Klaipeda. Companies have already submitted proposals.
“We have been working with the Ukrainians for several weeks now, the most important thing is coordination with the railways. Several companies have already received specific proposals for transportation from the Ukrainian-Polish border to the port of Klaipeda,” Skuodis said.
At the same time, he noted that the main problem lies in the different width of the railway track of the Russian and European types.
“It is rather difficult to switch from Russian standard tracks to European ones in Poland, then to the Kaunas intermodal terminal and beyond. These are issues related to the availability of wagons and other things,” Skuodis said.
According to him, a trial train is already planned, which should leave in the coming weeks.
“The trial run is scheduled for April. We are ready for our part, we just need customers, and we can try in late April – early May, then we’ll see. Of course, the most direct route will be through Belarus, but this country is involved in certain military operations, therefore it would be impossible,” Skuodis said.
Grain export from Ukraine was disrupted due to Russia’s military actions on Ukrainian territory.
According to the head of the European Commission in Lithuania, Marius Vashchega, Ukraine occupies 10% of the world wheat market, 13% – barley, 15% – corn, more than 50% of the sunflower oil market.

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UKRAINE ABANDONS BAN ON EXPORT OF LIVE CATTLE AND BEEF AND REPLACES IT WITH LICENSING

Ukraine has abandoned the March 5 ban on the export of live cattle (UKTVED code 0102), frozen cattle meat (code 0202) and meat and edible meat by-products, salted or in brine, dried or smoked; edible flour from meat or meat by-products: cattle meat (code 021020).
According to the resolution of the Cabinet of Ministers No. 422 of April 9, published on its website on Sunday night, licensing of the export of these goods was introduced instead of zero quotas.

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MAIN TRADE PARTNERS OF UKRAINE IN % FROM TOTAL VOLUME (EXPORT FROM UKRAINE TO OTHER COUNTRIES) IN 2021

Main trade partners of Ukraine in % from total volume (export from Ukraine to other countries) in 2021

SSC of Ukraine

MINISTRY OF ECONOMY NOTES HUGE DECLINE IN EXPORTS OF UKRAINIAN GOODS AND IMPORTS IN MARCH DUE TO WAR

Ukraine in March 2022 exported 5.97 million tons of goods worth $2.7 billion, which is 2.2 times less than in February in terms of quantity and half in value, while imports of goods to Ukraine in March amounted to 5 million tons $5.9 billion, which is more than three times less than in February. “Ukraine’s export volume in March amounted to 5.97 million tons worth $2.7 billion. While in February, the state exported 13.1 million tons of goods worth $5.3 billion. The main export items are ores, corn, ferroalloys and oil “, the Ministry of Economy said in a release on Sunday. The export of metals and agricultural products was particularly affected, however, the volume of exports of a number of goods with deep processing remained practically unchanged compared to the pre-war period, the Ministry of Economy added. The Ministry notes a significant reduction in metal exports. In particular, the export of flat products fell by almost 10 times – from 437 thousand tons in February to 47 thousand tons in March. “For some metallurgy positions, exports were not made at all. This is primarily due to the physical destruction of metallurgical facilities and the stoppage of production,” the ministry commented. In March, Ukraine exported 1.1 million tons of corn, 309 thousand tons of wheat, 118 thousand tons of sunflower oil, 40 thousand tons of soybeans. This is four times less than in February, according to the data of the Ministry of Economy. “At the same time, for many items of goods with deep processing, the volume of exports remained at the level of the previous month and even increased. These are, for example, cable products, the export of which amounted to $111 million ($130 million in February) or wood facing sheets – $32 million against $26 million in February,” the Economy Ministry said. Due to the Russian invasion, Ukrainian imports suffered significant losses: if in February the state imported 5 million tons of goods worth $5.9 billion, then in March – 1.6 million tons worth $1.8 billion, the report says. Currently, the most important imports to Ukraine are gas, oil, oil products and coal. “The enemy is deliberately undermining the economy of our state by blocking domestic exports. The traditional route for the export of export goods was the Black Sea ports, blocked today by Russia. In addition, the occupiers are attacking metallurgical enterprises and agricultural infrastructure in order to prevent the restoration of our capabilities in the future. All this threatens not only Ukraine, but also the whole world, because our state was the guarantor of food security in a number of countries in Africa and the Middle East,” the press service of the Ministry of the First Vice Prime Minister of Ukraine – Minister of Economy of Ukraine Yulia Sviridenko quotes. To counter this, Ukraine is increasing the capacity of rail, road and river transport on the western border of Ukraine, attracting manufacturers, traders, transport companies, Sviridenko noted. “The remnants of basic agricultural crops in Ukraine are enough to ensure exports. In addition, the start of the sowing campaign inspires restrained optimism for the future harvest,” the head of the ministry said.

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STRUCTURE OF EXPORT OF SERVICES IN UKRAINE IN 2021

Structure of export of services in Ukraine in 2021

SSC of Ukraine